VZCZCXRO2610
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #3192 3341038
ZNR UUUUU ZZH
R 301038Z NOV 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 6983
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS BEIJING 003192 
 
DEPARTMENT FOR INR/R/MR, EAP/CM, EAP/PA, EAP/PD, C 
HQ PACOM FOR PUBLIC DIPLOMACY ADVISOR (J007) 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: PREL ECON KMDR OPRC CH
 
SUBJECT: MEDIA REACTION: RMB EXCHANGE RATE, CHINA'S TRADING 
RELATIONSHIPS 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
¶1.  RMB EXCHANGE RATE 
 
"Wen Jiabao: I hope the world's major reserve currencies remain 
stable" 
 
The Shanghai-based Shanghai Media Group (SMG) publication, China 
Business News (Diyi Caijing)(11/30)(pg A4): "At present, each 
country's macroeconomic policy should continue to focus on dealing 
with the crisis and stimulating economic growth.  A premature 'exit' 
from these policies could cause us to lose the gains we have 
achieved.  As two major economies and important trading partners, 
China and Europe should take real action to jointly oppose trade and 
investment protectionism.  China has maintained the stability of the 
RMB exchange rate, which has been an important contribution to 
global financial stability and economic development.  We will 
continue to keep the RMB stable at a reasonable and balanced level 
and to make the RMB exchange rate more flexible.  We hope that the 
world's major reserve currencies also remain stable." 
 
¶2.  CHINA'S TRADING RELATIONSHIPS 
 
a.  "China-U.S. economic and trade imbalances are a false topic" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(11/30)(pg 15): "History has shown that, over 
the last 30 years, the trading position and structure of the United 
States and China have resulted from globalization.  Cargo trade is 
only part of the China-U.S. bilateral economic relationship.  An 
imbalance in cargo trade should not be taken to represent and 
overshadow the entire China-U.S. economic relationship.  The United 
States has a large lead in services trade and investment when 
compared to China.  Over the past 10 years, the accumulated surplus 
in U.S. services trade with China was more than $20 billion. 
Furthermore, the imbalance in China-U.S. cargo trade is related to 
U.S. controls on exports to China.  The United States' rigid and 
conservative thinking has restricted American companies' exports to 
China.  Even though China has taken significant steps to expand 
imports from the United States, the trade imbalance between the two 
countries still remains.  Therefore, more attention should be paid 
to the cause of the imbalance and its underlying unfairness than to 
the imbalance itself.  The China-U.S. trade imbalance is more than a 
single issue, not mention the fact that it is not caused by China." 
 
b.  "Don't blame trade protectionism on China's excessive 
productivity" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(11/27)(pg 8): "The EU Chamber of Commerce 
issued a report criticizing China's 'excessive productivity' for 
causing global trade disputes.  Chinese experts believe that this is 
a ridiculous conclusion.  Liu Zhiqin at the Beijing office of Zurich 
Bank said that China's economic stimulus measures are primarily 
focused on the domestic economy, rather than on exports or foreign 
demand.  In addition, China's consumption goods, which do not 
include iron, steel, cement, or wind and electricity-related 
products, are not produced excessively.  The report is not based on 
facts.  It is inappropriate to blame protectionism on China.  Some 
Westerners made this theory up in order to scare China and exploit 
the unnecessary tension to their benefit.  Western countries' 
current increased protectionism towards China is in fact aimed 
solely at protecting their own interests. " 
 
 
HUNTSMAN